Demand for an item is projected to be 280 units per month. The monthly holding cost...
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Demand for an item is projected to be 280 units per month. The monthly holding cost is $2 per unit, and it costs $65 to process an order. a. Determine the EOQ. (Round the final answer to the nearest whole number.) EOQ units b-1. If the vendor is willing to offer the manager a discount of $10 per order for ordering in multiples of 50 units (e.g., 50, 100), would you advise the manager to take advantage of the offer? Yes O No b-2. If so, what order quantity would you recommend? O 135 50 O 100 c. Alternatively, If the demand can wait at the cost of $3 per unit per month, what should the order quantity and the amount short per order cycle be? (Round the final answers to the nearest whole number.) Order quantity Amount short per order cycle units units Demand for an item is projected to be 280 units per month. The monthly holding cost is $2 per unit, and it costs $65 to process an order. a. Determine the EOQ. (Round the final answer to the nearest whole number.) EOQ units b-1. If the vendor is willing to offer the manager a discount of $10 per order for ordering in multiples of 50 units (e.g., 50, 100), would you advise the manager to take advantage of the offer? Yes O No b-2. If so, what order quantity would you recommend? O 135 50 O 100 c. Alternatively, If the demand can wait at the cost of $3 per unit per month, what should the order quantity and the amount short per order cycle be? (Round the final answers to the nearest whole number.) Order quantity Amount short per order cycle units units
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Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
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